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Facilities, inventory, transportation, information, sourcing, and pricing. 2. Inventory Management and Optimization
A company uses 10,000 units of a component annually. The ordering cost is $50 per order, and the holding cost is $4 per unit per year. What is the EOQ? A) 250 units B) 500 units C) 1,000 units D) 2,500 units
Mitigation: Transition to an Everyday Low Pricing (EDLP) strategy to stabilize customer ordering patterns. Pillar 3: Sourcing, S&OP, and Network Design supply chain management midterm exam questions
"Source" covers procurement activities. "Plan" covers demand/ supply balancing. "Make" covers production. "Deliver" covers order management and transportation.
A company selling high-end, custom-made smartphones must prioritise which supply chain capability? A) High capacity utilization to lower fixed costs per unit. The ordering cost is $50 per order, and
Moving averages, exponential smoothing, and linear regression.
Exam Question: Which level of SCM focuses on these high-stakes, long-term plans? (Answer: ). Pillar 3: Sourcing, S&OP, and Network Design "Source"
Understanding the difference between making products based on forecasts (Push) versus making them based on actual customer orders (Pull). Quick Practice: Test Your Knowledge